Singapore Exchange Ltd. · SGX:S68
Singapore Exchange — Vard Holdings — Q2 2013 Earnings Presentation
25 slides from Singapore Exchange's earnings presentation, Jul 11, 2013
Slide 1: Built on trust
built on trust VARD a Fincantieri company
Slide 2: Disclaimer
Disclaimer This presentation should be read in conjunction with Vard Holdings Limited’s results for the period ended 30 June 2013 in the SGXNet announcement. Financial figures are presented according to SFRS. This presentation may contain forward-looking statements that involve risks and uncertainti
Slide 3: 2Q 2013 Results Presentation
2Q 2013 Results Presentation Vard Holdings Limited 11 July 2013 European network for Health Technology Assessment | JA2 2012-2015 | www.eunethta.eu
Slide 4: Key messages
Key messages Revenue of NOK 2 945 million for 2Q 2013, down from NOK 3 337 million in 2Q 2012 EBITDA of NOK 121 million for 2Q 2013, down from NOK 460 million in 2Q 2012 EBITDA margin, representing EBITDA to total operating revenues, of 4.1% for 2Q 2013, down from 13.8% in 2Q 2012 Order intake of NO
Slide 5: Business update
2Q 2013 Business update 11.07.2013 | Page 5
Slide 6: Vessel deliveries and new contracts – 2Q 2013
Vessel deliveries and new contracts – 2Q 2013 Vessel deliveries New contracts 1 AHTS Three new vessel contracts secured in 2Q 2013 Far Statesman from Vard Langsten (Norway) to 1 Offshore support vessel for Island Offshore Farstad Shipping 1 PSV for Simon Møkster Shipping 5 PSVs 1 Offshore Tug for Bu
Slide 7: Order book development
Order book development New order intake during the period (NOK million)1) 27 Vessels 12 555 28 Vessels 11 117 16 Vessels 9 501 4 Vessels 5 692 8 Vessels 6 Vessels 4 458 3 991 2Q 2013: NOK 1 209 million 1Q 2013: NOK 2 782 million 2008 2009 2010 2011 2012 1H 2013 Order book value at the end of the per
Slide 8: Order book status
Order book status Delivery Norway / Brazil Vietnam Total Order book as of 30 June 2013 (# of vessels) year Romania 2016 3 2016 3 3 Other 1 PSV 2015 7 2015 7 2 OSCV 1 Other 3 Other 2 AHTS 2 AHTS Delivery year 4 PSV 1 PSV 1 PSV 2014 20 2014 20 5 OSCV 3 Other 2 Other 3 AHTS 1 AHTS 10 PSV 1 PSV 2 PSV 20
Slide 9: Order book by region and vessel type
Order book by region and vessel type Order book Deliveries Order intake Order book By Region 31 Mar. 2013 2Q 2013 2Q 2013 30 June 2013 Norway / Romania 31 6 3 28 Brazil 13 1 - 12 Vietnam 2 1 - 1 Total 46 8 3 41 Order book Deliveries Order intake Order book By Vessel Type 31 Mar. 2013 2Q 2013 2Q 2013
Slide 10: Operations update – Brazil (Vard Niterói)
Operations update – Brazil (Vard Niterói) Successful delivery of one PSV during the quarter Business environment in Brazil still challenging; characterized by high personnel turnover and very high pressure in the subcontracting market Vard Niterói still suffering from overload situation; further del
Slide 11: Vard Niterói: Revised delivery schedule
Vard Niterói: Revised delivery schedule 2Q 2013 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 Pro29 DELIVERED Pro30 Pro31 Pro32 Pro33 mar-13 jun-13 sep-13 dec-13 mar-14 jun-14 sep-14 11.07.2013 | Page 11
Slide 12: Operations update – Brazil (Vard Promar)
Operations update – Brazil (Vard Promar) Operations commenced as scheduled with first steel cutting in June 2013; shipyard construction to be completed within 3Q 2013 Capex budget on target but higher-than-expected pre-operational expenses, and revised estimates of start-up cost Negative contributio
Slide 13: Production started at new yard Vard Promar
Production started at new yard Vard Promar First steelplates arriving at Vard Promar First steel cut 11.07.2013 | Page 13
Slide 14: Operations – Norway, Romania & Vietnam
Operations – Norway, Romania & Vietnam Operations elsewhere in the Group not affected by the situation in Brazil High workload in Romania Completion of several major yard investments in Tulcea, Romania, in Q3 2013, giving an excellent platform for future competitiveness Successful delivery of seven
Slide 15: Financial highlights
2Q 2013 Financial highlights 11.07.2013 | Page 15
Slide 16: Revenues and margins
Revenues and margins Revenues (NOK million) EBITDA (NOK million) and EBITDA Margin (%) 6 500 6 148 1 000 13.9% 6 000 5 692 900 853 5 500 800 5 000 4 500 700 4 000 3 337 2 945 600 460 3 500 7.5% 500 3 000 425 2 500 400 121 2 000 300 1 500 2 811 2 747 393 304 200 1 000 500 100 0 0 1H 2012 1H 2013 1H 2
Slide 17: Statement of income – major items
Statement of income – major items 2Q ended 30 June 1H ended 30 June (NOK million) D(%) D(%) 2013 2012 2013 2012 Revenue 2 945 3 337 -11.7% 5 692 6 148 -7.4% Materials, subcontract cost and others (2 163) (2 272) -4.8% (3 986) (4 102) -2.8% Salaries and related costs (518) (484) 7.0% (1 003) (958) 4.
Slide 18: Cash and cash equivalents, and construction loans
Cash and cash equivalents, and construction loans Net Cash (NOK million)1 Construction Loans (NOK million) 2 000 1 858 3 500 3 351 3 238 3 000 1 500 2 500 1 266 2 000 1 000 1 500 500 1 000 500 0 0 31 Dec 2012 30 Jun 2013 31 Dec 2012 30 Jun 2013 (1) Cash and cash equivalents less sum of short-term an
Slide 19: Major balance sheet items
Major balance sheet items As at (NOK million) 30 June 2013 31 December 2012 Non-current assets 2 663 2 410 Current assets 10 197 10 404 Total assets 12 860 12 814 Total equity 3 420 3 227 Loans and borrowings and construction loans 3 430 3 385 Trade and other payables and construction work in progre
Slide 20: Cash flow highlights
Cash flow highlights 2Q ended 30 June 1H ended 30 June (NOK million) 2013 2012 2013 2012 Cash flows from operating activities 58 750 (277) 1 007 Cash flows from investing activities (176) (195) (328) (310) Cash flows from financing activities 139 (367) 165 (428) Net change in cash and cash equivalen
Slide 21: Earnings per share
Earnings per share 2Q ended 30 June 1H ended 30 June 2013 2012 2013 2012 Earnings for the period (NOK millions) -20 279 168 548 Earnings for the period (SGD millions) -4 59 36 116 Weighted average number of shares (millions) 1 180 1 180 1 180 1 180 Earnings per share (NOK) -0.02 0.24 0.14 0.46 Earni
Slide 22: Net asset value per share
Net asset value per share As at 30 June 2013 31 December 2012 Net asset value at the end of the period (NOK millions) 3 385 3 162 Net asset value at the end of the period (SGD millions) 735 694 Number of shares (millions) 1 180 1 180 Net asset value per ordinary share (NOK) 2.87 2.68 Net asset value
Slide 23: Outlook
2Q 2013 Outlook 11.07.2013 | Page 23
Slide 24: Outlook
Outlook Positive outlook for new order wins in 2H 2013 despite fiercely competitive market and uncertain macro outlook Opportunities for sizeable projects in the subsea support and construction vessel segment Fewer but larger orders expected Increased exploration and strong rig activities driving de
Slide 25: VARD, a Fincantieri company
VARD’ a Fincantieri company